Which state is most likely John's tax home, given his work situation in Denver and Sioux Falls?

The correct answer is that South Dakota is the most likely tax home for John, considering his work situation. A tax home is generally defined as the location of an individual's regular or principal place of business, or if there is no such location, the individual’s regular place of abode.

In this case, since John spends equal time working in both Denver, Colorado, and Sioux Falls, South Dakota, the state where he has the most significant connection in terms of residence or business activities will influence the determination of his tax home. If John is considered to be maintaining a primary residence in South Dakota, particularly if he has more substantial personal and business ties there, then it can be concluded that South Dakota is his tax home.

As for the other choices, John cannot simply choose his tax home based on the time spent in both locations, as tax home status is determined by various IRS guidelines related to work and residency. Being classified as an itinerant worker suggests that he does not maintain a regular work location, which typically would not apply if he has a clear primary residence. Colorado cannot be considered a tax home if John does not have a designated business connection or abode there that surpasses his connections to South Dakota. Thus, South Dakota emerges as the most appropriate